Post

To put this in very plain terms: Cursor is THE example - THE AI startup that proved you could build a successful company using Anthropic/OpenAI’s API - their $500m revenue came from a product they can no longer sell. Their death would prove that there is no VC opportunity in gen AI startups.

23 reposts308 likes

Cursor is Anthropic’s largest customer for API calls, and I would guess they make up at least $400m - so 10% - of Anthropic’s revenue. Any reduction in their spend - or their death - would savage Anthropic’s revenue. Why am I the only asshole writing about this? Good grief.

We have seen it all before, remember WebVan? Folk who should have known better were telling us how very stupid we all were for thinking old-tech supermarkets stood a chance against those high tech distribution centers.

Their $ may not work but your extrapolation is poor too. How do you know what the average user is doing based on this one example? Did this user get the notification that they exceeded Pro tier limits and would auto upgrade or get hit with usage fees?

Also, are you sure that Cursor is not show list API cost while they might actually pay Anthropic a deeply discounted amount? They would do this to convey higher value in their offering to users.